Gold Prices Slump as US-Iran Conflict Escalates

Gold and silver prices in India declined on Wednesday due to ongoing uncertainty over the US-Iran conflict and fears of a potential Federal Reserve rate hike. The international gold market also saw a decline, with spot gold falling 0.6% to $4,304.01 per ounce, its lowest since August 7.

The escalation of the Middle East conflict led to an increase in oil prices, which stoked inflation and weighed on gold prices. This resulted in both 24-karat and 22-karat gold rates showing a marginal decline across major cities in India.

The price of spot gold was down 0.6%, while MCX gold rate was trading 1.07% lower at ₹150,530 per 10 grams. MCX silver futures were also down, trading about 1.26% lower at ₹231,830 per kg.